Rise in local unemployment reflects weakness in economy

11 August 2011

South Australian unemployment increased in July according to the State’s leading business membership organisation, Business SA.

The Australian Bureau of Statistics Labour Force figures show the seasonally adjusted unemployment rate for South Australia in July 2011 increased 0.2 percentage points to 5.3 per cent.

Statistics show the national unemployment rate for July increased 0.1 percentage point to 5.1 per cent.

Nationwide the participation rate remained at 65.6 per cent, while South Australia’s participation rate also remained unchanged at 63.8 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said the increase in unemployment was reflective of the current environment.

“South Australia’s unemployment increased last month and we now have the second highest rate of unemployment in the country,” Mr Vaughan said.

“This data and last week’s retail trade figures confirm that the Reserve Bank made the right call by leaving interest rates on hold.

“Low business and consumer confidence throughout the economy is limiting employment opportunities and it is essential that we turn this around in the second half of the year.

“The impact of wage rises from July 1 no doubt added to the strain being felt by small businesses throughout the State.

“South Australia’s data followed the national trend with the number of unemployed people increasing across the month.

“It remains a tough environment out there and with consumer spending remaining low, costs rising and turmoil on global financial markets, we expect pressure to remain on employment levels in the coming months.”